Datatec to buy U.S. technology firm for $42 million

Reuters News
Posted: Jul 29, 2015 6:22 AM

JOHANNESBURG (Reuters) - Datatec Ltd's Logicalis Inc unit has agreed to buy U.S.-based Advanced Technology Integration Group (ATIG) for $42 million, giving the South African IT firm a bigger presence in the Midwest.

The Johannesburg-listed global technology and services provider said in a statement on Wednesday the acquisition is subject to a number of conditions and is expected to become effective in September 2015.

"ATIG is central to the consolidation of our position in that market," Datatec's Chief Executive Jens Montanana said.

The acquisition is expected to be earnings enhancing for Datatec after ATIG reported revenues of $133 million in 2014.

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Datatec shares rose 0.90 percent to 65.99 rand by 1010 GMT (0610 EDT) after rising more than 7 percent over the past 2-1/2 months.

(Reporting By Nqobile Dludla; Editing by James Macharia)